DX Group reopens more former Tuffnells sites to expand network

16th Oct 2023 07:53

(Sharecast News) - DX, the logistics and delivery services group currently undergoing a potential takeover by US private equity firm HIG, said it has reopened another 10 of the depots that it took over Tuffnells Parcels Express, which went into administration in the summer.

DX, which took over 15 sites from Tuffnells back in June for £1m, said it has now reopened 12 of them in total.

All of the new depots, located across the England and Scotland, were acquired for their enhanced, purpose-built cross-dock facilities and excellent transport links, FX said.

The company said the openings have accelerated the expansion of its network and increased its freight capacity and capabilities. Since July, the company has added over 700 former Tuffnells customers, along with 350 of its former employees, driving its estimated market share in the irregular dimension and weight (IDW) market from 15% to 25%.

"Developing the depot network is a key component in delivering our continued growth plans, and we expect to be able to report on further openings over the coming months,," said DX chief executive Paul Ibbetson.

DX Group announced back in September it had received a takeover offer from HIG European Capital Partners worth 48.5p a share (around £300m), which was supporting by its 19% stakeholder Gatemore Capital Management.

Last week, the company was forced to extend its so-called 'put-up-or-shut-up' deadline from 9 October to 6 November for HIG to announced a firm intention to make an offer or back down. DX said HIG was making "substantial progress" in completing its due diligence and paperwork ad just needed more time.